Donald Trump’s Investments Include Companies He Bashes

Donald Trump has invested in some of the companies that he uses as punching bags on the campaign trail, according to new financial documents he submitted to the U.S. government.

In his 104-page public financial disclosure report, the presumptive Republican nominee reported holding investments in companies like Ford Motor f, Apple aapl and the parent company of the maker of Oreo cookies — all businesses that he’s assailed for outsourcing or, in Apple’s case, not agreeing to crack into iPhones for police or federal law enforcement in criminal cases. Trump also has invested in other companies that have outsourced jobs but escaped his public shaming.

One of Trump’s main talking points during his campaign rallies is that as president he would stop the outflow of American jobs. He often calls out companies and their products by name. The investments make up only a tiny fraction of Trump’s reported net worth, and a comparison with his previous filings show he’s reduced his holdings in some of the companies he targets.

Trump’s campaign did not respond to emailed questions about his investments in companies that have recently outsourced jobs. The campaign also did not return a phone message from The Associated Press on Wednesday.

“I love Oreos. I will never eat them again,” Trump said in August after Nabisco announced it was laying off 600 bakery workers in Chicago and building a new facility in Mexico. Trump reported between $5,000 and $15,000 in interest income from a now-sold investment in Nabisco’s parent company.

“Who do they think they are?” Trump said of Apple in February, when the company balked at hacking an iPhone used by one of the two people in a mass shooting in San Bernardino, California. More recently, Trump pledged to make Apple “build their damn computers and things in this country.” Trump holds multiple investments in Apple, which combined are worth between $1.1 million and $2.25 million.

“We’re going to tax you when those air conditioners come,” Trump said in February of air conditioner manufacturer Carrier Corp., whose parent company United Technologies utx relocated 1,400 jobs to Monterrey, Mexico. Trump no longer owns stock in the company, but he earned between $2,500 and $5,000 in interest income from a sold investment.

In March, Trump blasted Disney dis for its “outrageous practices” in requiring 250 Florida workers to train their foreign replacements before being laid off. Trump owns between $15,000 and $50,000 in Disney stock.

In April, Trump called Ford’s plans to open a $1.6 billion assembly plant in Mexico “an absolute disgrace,” and threatened to impose a 35 percent tax on imported Ford vehicles. In his personal financial disclosures, Trump reports investments in Ford Motor Credit Co. worth between $500,000 and $1 million.

Trump so far hasn’t attacked all the companies he listed on his financial records that have outsourced jobs. Trump listed investments in V F Corp. vfc and Thermo Fisher Scientific tmo, both of which moved jobs out of the U.S. in high-profile outsourcing deals last year.

But Trump has put the others on notice.

“Carrier and Ford and Nabisco need to know that there are consequences to leaving and firing people,” Trump said at a rally in Evansville, Indiana, last month. “You can’t just go to another country and make products to sell across our weak borders.”

SoftBank Shareholder Criticizes President Nikesh Arora

A group of SoftBank shareholders, led by a Swiss consultant named Nicolas Giannakopoulos, has called for an internal investigation of company president Nikesh Arora, according to Bloomberg.

A “sharply critical” letter sent by the shareholders to SoftBank in January accuses Arora, the Japanese telecom giant’s second-in-command, of making bad deals, earning too much money, and having conflicts of interest. But absent of some misconduct that the shareholders have not yet revealed, it appears to be a flimsy set of allegations. (Via email, Giannakopoulos directed me to an associate who did not respond to request for comment.)

Regarding the bad deals, Arora’s mandate was initially to make investments in media and entertainment companies. One of those deals, DramaFever, didn’t pan out, and SoftBank has since sold it. When Arora was promoted to president, he began investing in mature tech startups, mostly in emerging markets. One of those deals, Housing.com, has been a failure. It’s too soon to tell how well SoftBank will fare on the rest of Arora’s deals, which include highly valued startups such as SoFi, Ola Cabs, SnapDeal, and Oyo Rooms. Venture capital investments, even at the late stage in which SoftBank is investing, can take years to pay off.

But the biggest reason the “bad deal” argument is flimsy is because SoftBank’s founder and CEO Masayoshi Son is himself an erratic dealmaker. He is known for taking big, bold risks, which sometimes create big rewards, as with SoftBank’s investment in the Japanese arm of Vodafone, and which sometimes nearly tank the company, as happened during the tech bubble crash of 2001.

Regarding the excessive pay, Arora does not come cheap. To align his interests with SoftBank’s, last year he took on personal debt to buy $483 million worth of SoftBank stock. He can also take some credit for SoftBank’s 500 billion yen share buyback, which has helped boost the company’s slumping share price this year.

Lastly, Giannakopoulos’ group has accused Arora of a potential conflict of interest with private equity firm Silver Lake. Silicon Valley is so clubby and interconnected that every power player seems to have ten different conflicts so, when conflicts arise, the Conflicted Ones recuse themselves from negotiations. Regardless of whether a conflict exists, the mere appearance of one can lead to problems. Activist investor Carl Icahn used that argument against Marc Andreessen to split up eBay EBAY and PayPal PYPL.

Arora has defended his advisory role at Silver Lake, telling Bloomberg he only spends 10 to 20 hours a year advising the firm and that he may end the relationship when his contract ends. That lines up with what he told me last year, as part of a profile I wrote in November. I asked Arora who he turns to for advice. He mentioned Yahoo YHOO founder Jerry Yang, his boss Masayoshi Son, and Egon Durban, a managing partner and managing director at Silver Lake. I asked which companies he advises at Silver Lake. His response is below:

Oh, I don’t do any companies. I met Egon in London 11 years ago, he had just moved there. I had just gotten off of an advisory gig at Apax because I didn’t feel like I had connected, so I said, “No I’m not doing it anymore.” A Spencer Stuart headhunter who helped me hire all the people for my first startup said, “Look, you have to meet this guy.” So I met Egon.

I said, “I don’t want to do board meetings, I don’t want to sit in rooms, I don’t want to be bored to death.” He said, “It’s very simple. I’ll call you for advice when I need you and if you are not conflicted, you tell me what you think. And if you’re conflicted, just tell me, ‘I’m conflicted’ and I won’t ask.” So that’s the arrangement.

Here’s Why Apple Is Holding Back Hedge Funds

Shares of the iPhone maker are one of the biggest bets among hedge funds, with 47 of them listing Apple among their ten largest holdings as of the end of 2015, according to a report from Goldman Sachs gs on March 18.

At the same time, mutual funds are going the opposite direction: Apple is their second-largest underweight holding, meaning the funds invest less of their portfolio in the company than its percentage weighting in the benchmark S&P 500 index.

The difference of opinion on Apple, with shares flat year to date, is one reason hedge funds are again lagging.

The average hedge fund was down 3.3% through February, while the average large-cap core mutual fund fell just 0.8%, according to data from fund tracker Morningstar.

Mutual funds, meanwhile, have benefited from being overweight in Facebook fb, CVS Health cvs, and Cisco Systems csco, according to Goldman.

Mutual fund managers believe Apple no longer enjoys the outsized prospects it had in the past.

“We’ve done very well with this company for a long time but it’s so large now that it’s becoming impossible for it to move the needle meaningfully” in terms of revenue growth or profits, said one fund manager from a well-known firm. The manager, who did not want to be identified because he was not authorized to speak publicly, sold all of his shares in the company.

With the higher concentration of hedge funds owning the stock, Apple should brace for more activist calls to raise its dividend, offer more share buybacks, or acquire more companies to increase short-term returns, said Todd Rosenbluth, director of mutual fund research at S&P Capital IQ.

“Your typical mutual fund manager is going to have more patience than your typical hedge fund manager, who if they have a sizable stake are going to push for structural or corporate changes to enhance shareholder value,” he said.

Hedge fund Bridgewater Associates increased its stake in Apple by 19% during the fourth quarter of 2015, while Tiger Global Management initiated a position, buying 10.6 million shares in the same period, according to SEC filings.

At the same time, well-known activists such as Carl Icahn and David Einhorn have trimmed their positions..

Hedge fund manager Morris Mark, whose firm Mark Asset Management oversees $500 million in assets, said he is maintaining a large position in Apple, even as the shares flat line. He sees the iPhone as the gateway into new home-based products.

“They’re going to come out with more services layered on top of this incredible franchise, and you are going to see their entire ecosystem grow,” he said.

Donald Trump’s Hedge Fund Investments Aren’t Doing So Well

Donald Trump’s presidential campaign is built on his business acumen. But some of the Wall Street funds that he has invested in have proven less successful, underperforming industry benchmarks in the last 15 months, according to a Reuters examination.

Eighteen out of 21 hedge funds and mutual funds in Trump’s portfolio lost money in 2015, and 17 of them are down so far this year, according to public disclosures and private performance data seen by Reuters.

The funds managed by Paulson plcc, BlackRock bbn, Baron Capital bcap and others lost an average of 8.5% last year, according to Reuters calculations, whereas stock market and hedge fund industry benchmarks broke even or came close to it. Trump’s funds are down another 2.9% so far this year, underperforming many benchmarks again.

The performances in part reflect broader weaknesses in the investing climate. The last 15 months have been difficult for many portfolio managers amid volatile stock markets, tumbling oil and commodity prices, and an economic slowdown in China.

Trump defended his holdings in an interview with Reuters, saying he invested in the funds three or four years ago and they have done well over time.

“I put some money with people that are friends,” the New York businessman said by phone on Monday, without naming names.

“I have no idea if they are up or down. I just know that they have been very good over a period of time,” added Trump, the front-runner for the Republican nomination for the November presidential election.

Representatives for Baron, BlackRock, and Paulson declined to comment.

To be sure, some of Trump’s funds have performed well this year. For instance, Gabelli Funds’ gab GAMCO Global Gold ggn, Natural Resources & Income fund, a closed-end vehicle, has gained 16.27% through March 22, beating a benchmark return of 15.89% for natural resource funds, according to net asset value data from Morningstar.

Another fund that Trump has invested in, the Invesco European Growth Fund, gained 4.82% last year versus a benchmark loss of 5.66%, according to Morningstar.

Gabelli and Invesco declined to comment. Both funds are listed as small holdings within Trump’s broader brokerage accounts.

Some Funds Outperformed

The 21 funds examined by Reuters were among 23 funds that Trump disclosed last year in a July 15 filing with the Federal Election Commission. The performance of two of the funds could not be discerned.

The Reuters review included performance data publicly disclosed by 14 mutual funds, as well as performance data on seven hedge funds seen in confidential fund reports or shared by people familiar with those firms.

Trump told Reuters the funds are a tiny part of his investment portfolio.

“I do very little hedge funds business. I for the most part don’t believe in it,” he said.

While Trump selected the funds, their managers are responsible for choosing securities to invest in and the funds’ subsequent performance.

Some investing experts who looked at Trump’s portfolio and Reuters’ compilation of their performance were not impressed, saying he could have earned better returns by investing in other hedge funds.

For instance, Reuters previously reported that Millennium Management’s main Millennium International fund gained 12.65% in 2015, while Citadel gained 14.3% in its main multi-strategy hedge funds.

“By the looks of it, Mr. Trump’s investing prowess is very pedestrian,” said Brian Shapiro, chief executive of Simplify, which tracks and analyzes alternative investments like hedge funds.

“For someone who prides himself on being surrounded by the best talent,” added Brad Alford, an investment advisor and CEO of Alpha Capital Management, “I’m surprised to see so few winners.”

To be sure, some of Trump’s funds that fell in 2015 have fared better in previous years. For instance, BlackRock’s Obsidian fund has averaged annual returns of 3.39% over the last five years, according to a person familiar with the performance.

Obsidian fell 6.17% in 2016 through March 11, while other comparable funds rose 0.69%, according to a private client report by HSBC’s hsbc Alternative Investment Group seen by Reuters. BlackRock declined to comment.

“You can’t measure it in a short time. I’m way up with BlackRock. I’m way up with Obsidian,” Trump told Reuters, without elaborating further.

Trump disclosed a $27.6 million stake in Obsidian in May 2015, his largest fund holding. It is unclear when Trump first invested in Obsidian, which bets on corporate and government bonds, along with interest rates and other securities.

Obsidian was burned by a slide in oil and other commodities, according to a February BlackRock client note seen by Reuters.

Paulson Losses

Trump’s stable of funds include two Angelo Gordon hedge funds, three Paulson hedge funds, and 11 Baron Capital mutual funds. The mutual funds are open to virtually anyone, but hedge funds are only accessible to those that meet minimum wealth requirements, which typically include a net worth of more than $1 million.

A representative for Angelo Gordon did not respond to a request for comment.

Baron’s billionaire founder, Ron Baron, is known for long-term bets on companies and an optimistic world view.

Trump uses 11 Baron vehicles with different investment strategies, including small-cap stocks, real estate and emerging markets. Nine of the funds lost money in 2015, with one energy and resources vehicle falling nearly 32%, according to data compiled by Morningstar. Nine are down this year through March 22 with single-digit losses.

Baron’s long-term track record is better. The firm’s best-known Baron Growth Fund has gained an average of about 8.6% annually over the last five years.

Paulson’s funds have produced a mixed performance in recent years. Led by New York billionaire John Paulson, the firm became famous for its prescient bet on the collapse of the subprime mortgage market leading up to the financial crisis.

But in 2015, the three Paulson funds used by Trump all fell, according to data provided by an investor to Reuters. One of the funds, the Paulson Advantage Plus fund, had declined an average of about 22% every year over the last five years, according to a confidential fund report seen by Reuters.

Trump’s filing to the FEC lists myriad business ventures, including holdings in hotels and golf properties, as well as individual stocks such as Apple aapl, Goldman Sachs gs and Altria Group mo.

Team8, a cybersecurity startup based in Israel, said Tuesday it raised $23 million. The Series B round of financing includes investors AT&T T, Accenture acn, Nokia nok, Japanese conglomerate Mitsui, and Singaporean government-owned Temasek.

Nadav Zafrir, co-founder, CEO, and former head of Israel’s intelligence unit 8200, the country’s National Security Agency equivalent, describes his company as a cybersecurity “foundry,” meaning that its purpose is to churn out startups and founders of its own. He tells Fortune that Team8 has plans to launch five companies in five years.

Team8 has hired 130 people in the past year, Zafrir says. Founded in 2014, the company has already launched one company.

Illusive Networks, its sole progeny (so far), has itself raised $27 million in two rounds of funding from investors that include Team8, New Enterprise Associates, and the venture capital arm of Citi Group c. The firm deploys “deception” technology in corporate IT environments—bogus bait like network administrator credentials, for example—in order to fool and ensnare hackers.

For more on cybersecurity startup funding, watch:

Team8 plans to launch two more companies this year, Zafrir says. The first should debut in about three months and is focused on protecting industrial firm’s networks, such as those of utilities and oil and gas companies. The second should be officially announced in six months and aims to provide data breach cleanup services to businesses victimized by hacks.

“Cyberattacks are evolving and are no longer only a CIO, CSO, or IT department issue,” said John Donovan, chief strategy officer and president of AT&T’s Technology and Operations group, in a statement. “This strategic investment is key to not merely iterating, but innovating against today’s highly adaptive attacker.”

Future plans for Team8 include the launches of two more companies focused on some mix of cloud, mobile, or Internet of things, Zafrir says. He said he expects the latest set of investors to provide Team8 with expertise and engineering skills, as well as insight toward expanding into global markets like Asia.

The major U.S. securities regulator’s recent decision to scale back on examining brokers so it can boost oversight of investment advisers was borne of necessity, officials said on Saturday, calling the transition a “positive experience.”

Reuters reported last month about the shift to address what some see as a major gap in the Security and Exchange Commission’s routine monitoring of investment advisory firms. But the regulator did not publicly confirm the decision until asked at a meeting of securities lawyers in Washington on Saturday.

“We continue to work closely with the regions, the staff and our stakeholders to try and reach our goal of transitioning some of the BD staff over to the IAIC [investment adviser] program,” said Marc Wyatt, director of the examinations office.

“It’s been a very positive experience for stakeholders in terms of trying to get this done as efficiently and effectively as possible.”

The SEC’s 2015 annual report shows the agency examined only 10% of all investment advisers registered with it. But the SEC and the Financial Industry Regulatory Authority, Wall Street’s self-funded regulator, combined were able to examine 51% of all registered brokerages. SEC exams of advisers have become more complex since Congress in 2010 gave the agency new powers to oversee hedge funds and private equity funds.

“The number of advisers registering is increasing,” said Jane Jarocho, the associate director in the office overseeing investment adviser exams. “If your denominator is increasing by over 500 new registrants each year, it’s very difficult to increase coverage.”

That increase meant the regulator was on a “hamster track,” if it did not dedicate more staff to examining advisers, she added.

The SEC will continue to conduct broker-dealer exams, but is looking to FINRA for help, said John Polise, and associate director focused on market oversight, adding that the commission will need to ensure FINRA has “dedicated and non-conflicted oversight.”

He added the decision was made after taking “a look at reality.”

On Friday SEC Chair Mary Jo White told the meeting she was continuing to take steps toward “a workable program for third-party reviews to enhance the compliance of registered investment advisers.”

Currently, commission staff are drafting a proposal that would cut costs and that takes into consideration some congressional concerns about relying on third-parties to conduct reviews, said Diane Blizzard, associate director of the SEC’s investment management office on Saturday.

The Big, Costly Investing Mistakes That Jeb Bush Is Making

Presidential hopeful Jeb Bush is spending too much money on his investments, with no sound unifying strategy. That’s the judgment of several fee-only financial advisers whom MONEY asked to review the financial disclosure documents that Bush released to the public after announcing his run.

Their collective assessment: The former Florida governor could be doing a lot better with his money. Bush’s portfolio consists of an unwieldy thicket of investments rather than a coherent plan, says Redondo Beach, Calif., financial planner Scott Leonard.

By way of example, the financial advisers point to the 20 high-cost, overlapping funds currently cluttering up his IRA. That mix, they say, highlights how owning too many similar funds, many with hefty fees, can eat away at possible returns. (Some of his family’s other accounts show similar issues, the advisers say.)

The Bush campaign did not respond to multiple requests for comment.

Too Many Funds

The first problem, says Lake Oswego, Ore., financial planner Joseph Alfonso, is the sheer number of funds in Bush’s IRA.

“There is no magic number of funds to hold, but you can create a well-diversified account with just a handful of broad index funds,” says Alfonso says. “Having only a few index funds makes managing your portfolio pretty straightforward, and there should be little to no overlap of market coverage, if done properly.”

“Even if you want to cover the market in a more granular way,” he adds—“say, by owning small-, medium- and large-cap funds to cover the total U.S. stock market, maybe because you want to overweigh sectors that have typically outperformed—you’re not looking at needing 10 funds. It is hard to justify owning 20 funds.

“Complexity doesn’t buy you anything,” he adds. Depending on which funds you own and how they are held, it could be very costly to rebalance that many funds, he says.

Active Underperformance

Bush also appears very fond of active funds, the advisers note. Research shows that these funds rarely outperform low-cost index funds.

San Diego financial planner Andrew Russell points out that some of Bush’s active funds with complicated investment strategies — like Wasatch Long/Short Investor (FMLSX), with average annual returns of 3.2% over the past decade, and Wells Fargo Advantage Absolute Return (WABIX), up 4.7% — have lagged plain vanilla index funds. The S&P 500 has returned about 6.3% a year on average over the past 10 years.

Complicating matters, Bush tends to place overlapping bets—owning several international stock funds, for instance. While it may make sense to pay a premium for one manager you really believe in, Leonard says, hiring several to do essentially the same job doesn’t add up.

“Even if any of these active managers were able to outguess the market, by setting them up against each other, any possible value they may add is gone,” says Leonard. “Less than 20% of active managers beat their benchmark, and every time you add another manager you decrease that probability of success.”

If Bush wants to remain actively invested, he should pick one or two managers and stick with them, Leonard suggests. Otherwise, he should consolidate his holdings into a couple low-cost index funds that will actually give him a passive, diversified portfolio.

High Costs

Relying on active management creates another problem: hefty fees.

“His IRA has very expensive holdings, with many funds carrying management fees in excess of 1%,” says Alfonso. The Blackstone Alternative Multi Strategy Fund (BXMIX) he invests in has a 2.4% management fee — which is “off the charts,” Alfonso adds: “He is easily overpaying for these investments.”

Investors who, like Bush, are interested in alternative funds should keep an eye on fees, says Short Hills, N.J., financial planner George Kiraly. He recommends a fund like the Vanguard Alternative Strategies Investor (VASFX), which has only a 0.36% expense ratio.

Planning a Makeover

Bush should figure out what he wants his investment strategy to be and then set a plan, the financial planners agreed. A diversified portfolio is important, says Leonard, but Bush should sell the expensive active funds and buy the desired allocation in a less expensive manner, ideally with comparable lower-cost ETFs.

That’s a straightforward move in this segment of Bush’s portfolio, Leonard adds. “Because they’re in his retirement account,” he says, “there are no tax ramifications to trading his funds.”

Virtual Reality Video Game Industry to Generate $5.1 Billion in 2016

Video games will be the key driver of virtual reality hardware this year, according to a new report from SuperData Research. Game developers will also have a global audience of 55.8 million virtual reality users and produce 38.9 million virtual reality devices this year, according to the report.

Consumers will spend $5.1 billion on virtual reality gaming hardware, accessories and software in 2016. That’s up from the $660 million spent in 2015, says the marketing leader. Meanwhile, the global market is expected to grow to $8.9 billion in 2017 and $12.3 billion in 2018.

A breakdown of this year’s $5.1 billion global market shows Europe in the lead with a $1.9 billion share and North America close behind with $1.6 billion. That’s followed by Asia with $1.1 billion, and the rest of the world accounting for $0.6 billion.

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According to SuperData director of research Stephanie Llamas, light mobile virtual reality devices (like Google googl Cardboard) will drive the market at first with an audience of 27.1 million. Premium mobile virtual reality hardware, like Samsung Gear VR, will account for 2.5 million units sold in 2016. However, PC virtual reality devices (like Facebook’s Oculus Rift and the HTC Vive) will only sell 6.6 million headsets, with Sony’s PlayStation VR selling 1.9 million units.

Breaking down the global virtual reality market, Llamas says Asia’s 2.5 billion smartphone users lead the mobile virtual reality market, with hardware like Google Cardboard accounting for almost 80% of new devices installed.

“Western markets with large PC and console user bases will ignite device sales for the two platforms,” Llamas says. “American gamers interested in VR look most forward to console and PC devices. One-third intend to purchase a Playstation VR and 13% look to buy the Oculus Rift.”

Who’s Willing to Pay to Play

While Facebook is expected to announce its Oculus Rift pricing at CES, HTC is holding off on pricing for the HTC Vive. Additionally, Sony isn’t expected to announce a PlayStation VR price until later this year, possibly at the March Game Developers Conference in San Francisco.

Looking at the consumer market in more detail, Llamas says that younger consumer groups show a stronger interest in virtual reality. According to the company’s recent survey, 74% of U.S. respondents under 18 years of age indicated that they were “very interested” in virtual reality. For Millennials that number dropped to 65% and 54% for Gen Xers in contrast to only 42% for Baby Boomers.

WATCH IT: To learn more about virtual reality, check out the video below:

The problem the ecosystem faces is that the consumers who are most interested in virtual reality do not have the spending power necessary to support high-end devices. Llamas says PC and console virtual reality’s high barrier to entry will cause three out of four early adopters to opt for more affordable mobile devices.

“It is the more mature demographics that have the disposable income, with 18-54 year olds saying they’re willing to spend around $280 for hardware,” Llamas says. “Likewise, emerging markets like China are volume-reliant since average user revenue is low.”

Investment Reality

While Llamas says total investments in virtual and augmented reality reached a combined $6.1B between 2012 and 2015—triggering the current market momentum and increasing industry expectations. Investment in this space grew from $15 million in 2012 to $1.9 billion in 2015. Game development accounted for 60% of this investment, while 360-degree camera technology was the target of 30% of investments.

SuperData Research forecasts investments in the virtual reality and augmented reality market will grow to $3 billion this year and nearly $4 billion by 2018.

“VR investments more than quadrupled after Oculus VR’s $91M funding rounds in 2013,” Llamas says. “Funding comes from a variety of sources, which not only highlights immense industry interest, but means funding will continue to steadily roll in through 2018.”

Hedge Funds Are An Even Worse Investment Than Before

Hedge fund managers are some of the craftiest investors on the planet. But the benefits of their skills don’t, on average, accrue to the folks who actually invest in hedge funds.

That’s because after hedge fund managers take their hefty fees, investor returns, on average, don’t beat the market. As my colleague Roger Lowenstein wrote back in May, “The mystery of hedge funds is that their managers earn so much while (on average) their performance is so mediocre.”

He points out that over the past five years, hedge fund returns have averaged just under 5% per year, roughly one-third of the S&P 500’s performance over that same time. “Meanwhile, Institutional Investor reported that, in 2014—the sixth straight year of hedge-fund underperformance–the managers of 25 of the largest funds earned $11.62 billion, almost $500 million apiece,” writes Lowenstein.

But, for some reason, savers continue to pile money into these funds to their own detriment. And according to a report released on Friday from Hedge Fund Research—a hedge fund analysis firm—the performance of these pricey investment vehicles has taken a turn for the worse.

The HFRI fund composite index, which tracks global hedge fund performance, fell by 4.2% in the third quarter of 2015, the worst reading for the investment class since the third quarter of 2011.

Bill Gross Has This Warning for Investors

Bill Gross, the closely watched bond investor, on Thursday said that low interest rates are keeping alive “zombie corporations” that are unproductive and warned investors to de-risk portfolios into the new year.

Gross, who oversees the $1.4 billion Janus Global Unconstrained Bond Fund, has said since earlier this year that the U.S. central bank should raise interest rates to more normal levels, because zero-bound levels are harming the real economy and destroying insurance company balance sheets and pension funds.

“The faster and faster central bankers press the monetary button, the greater and greater the relative risk of owning financial assets,” Gross wrote in his December Investment Outlook. “I would gradually de-risk portfolios as we move into 2016. Less credit risk, reduced equity exposure, placing more emphasis on the return of your money than a double-digit return on your money.”

Gross warned that the negative feedback loop from the real economy “will halt the ascent of stock and bond prices, and investors will look around like Wile E. Coyote wondering how far is down.” The cartoon character Wile E. Coyote was forever leaping across wide chasms in pursuit of the Road Runner, flying long distances in thin air, but then looking down and falling off a cliff.

Gross likens central banks to casinos. “They print money as if they were manufacturing endless numbers of chips that they’ll never have to redeem. Actually, a casino is an apt description for today’s global monetary policy.”

“Japan for years has doubled down on its Quantitative Easing, and Mario Draghi’s statement of several years’ past, ‘Whatever it takes’ – is a Martingale promise in disguise,” Gross said. Martingale is a gambling system of continually doubling the stakes in the hope of an eventual win that must yield a net profit.

The “Martingale promise” vows to get the Euroland economy back to even and inflation up to 2% by increasing QE and the collateral it buys until the Euro currency declines, the euro zone economy improves, and inflation approaches target, Gross said.

Artificially low interest rates have kept alive “zombie corporations that are unproductive” and destroy business models such as insurance companies and pension funds because yields are too low to pay promised benefits, Gross said. “They turn savers into financial eunuchs, unable to reproduce and grow their retirement funds to maintain expected future lifestyles.”